Edelweiss Financial Plans to Raise Rs 300 Crore through NCDs
Mumbai-based financial services company, Edelweiss Financial Services Limited, has announced its intention to raise Rs 300 crore by issuing secured redeemable Non-Convertible Debentures (NCDs). The fundraising includes a base issue of Rs 150 crore and an oversubscription option (greenshoe option) of Rs 150 crore.
The NCDs will be available in 10 series, each with fixed coupons and varying tenures of 24, 36, 60, and 120 months. Investors can choose from annual, monthly, and cumulative interest options. The effective annual yield for the NCDs ranges from 8.94 percent to 10.46 percent.
Moreover, Edelweiss Financial Services, ECL Finance Limited, Edelweiss Retail Finance Limited, and Nido Home Finance Limited will provide an additional incentive of up to 0.20 percent per annum to holders of NCDs and previously issued bonds. This incentive will also be extended to equity holders of the company.
With this incentive, investors can earn a maximum effective yield of 10.66 percent. In comparison, ICICI Bank offers approximately 7 percent on 5-year fixed deposits.
The issue is set to open on July 4 and close on July 17, with the option for early closure at the company’s discretion.
Also Read: Genus Power Infra wins order worth Rs 2,207.53 Cr
According to a statement released by the company, at least 75 percent of the funds raised from this issue will be allocated towards repaying existing borrowings, including interest and principal amounts. The remaining funds will be utilized for general corporate purposes.
CRISIL Ratings Limited has assigned the NCDs a rating of ‘CRISIL AA-/Negative,’ indicating a high degree of safety regarding timely payment of interest and principal. Additionally, Acuite Ratings & Research Limited has rated them as ‘ACUITE AA-/Negative.’
About Dhruv:
Edelweiss Financial Services Limited is a versatile financial services conglomerate. The company offers a wide array of financial products and services, including retail and corporate credit, asset and wealth management, capital market solutions, advisory services, and insurance services. Edelweiss Financial Services caters to corporations, institutions, and individuals.
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